Liquidating loan self
You don't need to have a high net worth or be a millionaire to get an arbitrage loan.
In fact you don't need to invest a dollar of your own money.
Your current financial position is unimportant under this plan.
You may wonder if any bank will lend you 5 or 10 million based on a project without a substantial investment from you.
Short term, self-liquidating loans do this since the borrowed funds are used to purchase assets that generate the needed funds.
As these loans are short term and risk is being nullified and liquidated over payment of regular installments with super charges in a short period and being a highly secured loan.----this is an example of Self Liquidating Loan. What self-liquidating loans are (these are also sometimes called "Arbitrage Loans") is best explained by how they purportedly work.Well, if it doesn't work and nobody's going to give you any money, how do the promoters make any money -- after all, their not getting their commissions either, right? If you've been keeping your eye on the promoter's commissions you've already been suckered, because that's not the point of this particular exercise.These loans are intended to finance purchases that will quickly and reliably generate cash) Some of the banks, which do not have a large capital base or large number of longer maturing deposits, like to deploy a substantial portion of funds in short-term, self-liquidating loans to businesses. The main purpose of the bank provides the short term lending is to maintain the Regulatory Liquidity Asset Ratio and3 days stress test.This is the responsibility of the ALM (asset liability management) desk in Treasury (Global markets) to ensure return the short term fixed deposits on its maturities.